Showing posts with label UK. Show all posts
Showing posts with label UK. Show all posts

Thursday, August 24, 2017

MLMSkeptic Investigates: Why is Valentus illegal in the UK? (it's the ingredients)

Recently, it was all over the news (cite 1) (cite 2) (cite 3) that former finalist for Miss England and FHM model Charlotte Thompson was "busted" selling 'slimming coffee' and got a visit from the UK Trading Standards Officers and told to stop her business.  She went online to vent. But what you won't find in these news articles is WHY did Trading Standards make a visit to her home?

MLMSkeptic investigates this little conundrum, by exploring what Valentus did in the aftermath passing blame, then check the sources from Valentus itself, and the statements by Ms. Thompson, then checking the relevant UK laws and interpretations, to see if there is ANY hope for Valentus, in UK, and in rest of Europe.

Recently, when forced to address the issue, Valentus corporate "Director of International Registration", Terry Recknor, gave a webinar.  Ms. Recknor initially blamed Ms. Thompson for spamming thousands of people, implying that was the reason for the visit from Trading Standards, but she soon dropped this bomb:
What you need to understand is, the products technically are illegal because we’re not registered yet.
This seems to imply that as soon as Valentus registered their products in the UK, then there would be no more problems. In the meanwhile, there are suggestions that recruitment in UK and rest of Europe are continuing as if nothing was wrong, despite warning from Ms. Thompson that dealing in Valentus is apparently illegal.

So, what is the truth? Let's investigate first, what does UK Trading Standards actually do?  In the case of their visit to Ms. Thompson, it is to offer:

  • Business advice: Trading standards offer a range of business advice and enforcement policies for all traders and businesses. These range from issues regarding licensing to consumer protection laws.

So presumably, when you combine the various statements given by Ms. Thompson, Ms. Recknor, and explanations, one should conclude that


  • Valentus SlimRoast coffee needs to be registered in UK
  • Lack of registration is a violation of consumer protection laws
  • Ms. Thompson's spam alerted Trading Standards to let her know


But is this true?  Searching UK Food Laws (Food Safety Act 1990, Food Standards Act 1999, and Food Hygiene Regulations 2006) brought up nothing about registering coffee or similar drink mixes and such.  There had to be a different reason.

Which brings us back to "consumer protection", and what other areas does that cover. This was made clear at a different Trading Standards page:

We make sure that people are not misled by claims, prices, descriptions and other selling techniques used by traders when they are selling goods and services.

As it wasn't about registration, let us investigate whether Valentus made any misleading claims. But what constitutes misleading claims under UK law? As SlimRoast is about weight loss, I googled "weight loss claim UK", and that brought me to Advertising Standard Authority, or asa.org.uk and their guidance on slimming guidelines for the press (PDF).

Monday, August 7, 2017

What you can learn from the EuroFX scam that targetted Chinese victims

EuroFX is supposedly a forex trading company that started in 2012, has 13 year experience, and promised fat returns. It was shut down as a pyramid scheme in China in 2014, with possibly tens of thousands of victims that spread from the US to Phillippines, with possible amounts exceeding 2 billion USD.

What's interesting is the scope of the fraud: this involved Britons, Aussies, Singaporeans, and possibly more, with possible fake names and dozens of companies registered in UK and New Zealand and Australia.

The alleged head was a Briton by the name of David Byrne, and they promise returns of 6 -16% PER MONTH if you can invest up to 250K.  He presented himself as either CEO or Acting CEO. However, when investors caught up with him later after EuroFX's collapse, he claimed either he was only onboard for less than a year, or he's only "consultant CEO".

Whether David Byrne was guilty of collusion was NOT the issue. It's the matter of perception.


Myth: Companies registered in the UK are required to follow all UK law. 

Reality: Companies registered in the UK, but not sell to UK citizens, are NOT governed by UK law. In other words, a UK registered company can cheat and scam non-UK people, and UK law enforcement can do NOTHING about it.

That's what happened in EuroFX, were ActionFraud, the UK fraud hotline, received multiple tips about EuroFX, and even investigated, but ultimately determined that it is NOT within UK jurisdiction as it sold nothing to UK residents and citizens.

Basically, UK biz registration is worthless.

Not that you can rely on just a biz registration to determine if a business is legit any way.

But the point that companies can hire temporary CEOs is the other thing to take away... the alleged CEO is just a part of marketing.


Also see following links:

http://fortune.com/2016/08/13/eurofx-pyramid-scheme-china/

https://atozforex.com/news/why-the-west-ignores-british-ponzi-schemes/

http://eurofxvictim.weebly.com/ (Chinese/English site set up by victims to preserve evidence)